New Kirksville terminal nears completion; staff proposes t‑hangar upgrades using expiring federal and state airport funds

The Kirksville Municipal Airport terminal project remains on schedule, and staff proposed a separate T‑hangar rehabilitation project that would use several expiring federal and state aviation grants.

Terminal status: Airport staff said construction of the new 300‑day terminal project is on track for substantial completion May 29, 2026, and the overall project should finish by July 2026 barring unforeseen delays. Staff said Contour Airlines and TSA will move into the new terminal before a public ribbon cutting, and the old terminal will be available for short‑term training use by the Kirksville fire and police departments before demolition.

T‑hangars and expiring funds: Airport staff explained that several federal and state funding streams the city had set aside for airport capital were now expiring on fixed schedules; because the city obtained other funding for the terminal, those earmarked funds would need to be used or reallocated. Staff proposed using the expiring 2022 bipartisan infrastructure law (BIL) funds and 2023 congressional direct‑spending funds to rehabilitate the older first row of T‑hangars. Staff estimated that T‑hangar work would cost about $600,000 with a local match of roughly $30,000. The proposal emphasized replacing obsolete motor and pulley systems, repairing fiberglass hangar doors and addressing corrosion.

Why staff proposed T‑hangars: staff said the first row of hangars has older systems with sole‑source parts; repairing and modernizing those hangars would reduce ongoing maintenance costs and preserve tenant rental income. Staff also said the airport’s on‑hand fund balance has been negative in prior audits and that recent work has reduced the negative balance to about $68,000; using some of the expiring capital funds for hangar rehabilitation would shift work away from cash reserves.

Council reaction: councilmembers asked about other competing priorities such as entrance‑road and parking‑lot rehabilitation and a possible snow‑equipment storage building. Airport staff said those projects remain on the five‑year capital list and provided rough state bid figures for later years. Council asked staff to refine costs and to keep the long‑term airport fund balance in mind when scheduling projects.

Next steps: staff will provide a detailed funding plan that shows how expiring federal and state aviation funds would be used for T‑hangar rehabilitation, what the local match would be and how the airport fund balance would be restored during the next budget cycle.